LNG prices in Asia grow fivefold in 9 months

Spot gas prices in the Asia-Pacific region rose fivefold from March lows by November, VYGON Consulting analyst Ivan Timonin said, Report informs referring to angi.

“Average monthly spot prices for gas in both the European and Asian markets reached their minimum this year in March, when they amounted to $219 and $228 per 1,000 cubic meters, respectively. By November, they increased to $984 and $1,163 per 1,000 cubic meters, that is, 4.5 times in the case of the European market and more than five times in the Asia-Pacific region,” the expert noted.

Such rapid growth is related primarily to the growth in demand against the backdrop of recovery in economic activity. In Asia, this issue is more acute.

Since the beginning of the year, more than 260 million tons of LNG have been sent to the countries of the Asia-Pacific region, which already exceeds the previous year’s figure of 254 million tons. In total, by the end of 2021, almost 280 million tons of LNG will be sent to the region, that is, demand will grow by almost 10%, the analyst said. Most of it will be provided by China, which is the largest consumer of LNG in the world today. Demand in South Korea will also grow significantly, he added.

The list of the largest exporters of LNG includes Australia, Qatar, the US, Malaysia and the Russian Federation.

On December 13, the spot price of gas in Europe was $1,425.5 per 1,000 cubic meters, which is the highest level since the beginning of October, when the price soared to almost $2,000 per 1,000 cubic meters.